Photo: Michael Wuensch via Pixabay 

Bitcoin BTC is trading higher Wednesday and sits just below the $40,000 level again. The crypto has been back and forth crossing above and below this key level as it consolidates and gets ready for its next big move.

Bitcoin was up 1.68% at $38,489.69 Tuesday afternoon at publication.

Bitcoin Daily Chart Analysis

• Bitcoin continues to consolidate near the $40,000 level as it attempts to turn back around following a period of bearish movement. The crypto is starting to form higher lows (orange) and may be ready for a push higher if the market can see some buyers in the coming weeks.
• The crypto trades below the 50-day moving average (green) and the 200-day moving average (blue). This shows the crypto is trading with bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been consolidating the past couple of weeks and sits at 44. This shows that there is slightly more selling pressure in the market than there is buying pressure. The crypto has been very volatile lately so buying and selling pressure changes very quickly.

(Click on image to enlarge)

What’s Next For Bitcoin?

Bitcoin is nearing the $40,000 level again and if buyers come back into the market, it may cross back above the level once again. In order to see the crypto continue to push higher, bullish traders are looking to see a couple of things such as forming higher lows as well as crossing above the moving averages for more bullish momentum in the future. Bearish traders on the other hand are looking for the crypto to fall lower and see the RSI push toward the oversold region. The next area of support may be found near the $30,000 level.